Innovation needs to continue even in difficult economic times, notes study author
Corporate culture is the most important factor in driving innovation, according to the new research paper, Radical Innovation in Firms Across Nations: The Pre-eminence of Corporate Culture, to be published in the forthcoming issue of the Journal of Marketing.
The authors are Rajesh Chandy, a professor of marketing at the University of Minnesota's Carlson School of Management and a charter member of the U.S. Department of Commerce's Advisory Committee on Measuring Innovation in the 21st Century Economy, Gerard Tellis of the University of Southern California and Jaideep Prabhu of Cambridge University.
Professor Chandy notes that innovation is integral to the growth, success and wealth of firms and nations. He cautions that companies must resist the tendency to stifle the internal culture that supports such innovations during times of economic crisis.
"In times of economic trouble there is a temptation, often even an imperative, to say that innovation is something we can't afford right now," said Chandy in a news release. “But radically new products, which involve substantially different technology and considerably higher customer benefits, are precisely what propel new growth.”
In examining data from 759 firms across 17 countries, the researchers found that innovative firms share a common culture no matter where they are located, states Chandy. He notes that among traditional drivers of innovation, such as government policy, labor, capital and culture at the country level, the strongest driver of radical innovation across nations is corporate culture."Managers have control over the fates of their firms in that they can help build the culture of innovation. A sharp manager would look across industries and countries to spot innovative traits and strategies," says Chandy.
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